The majority of tenants decide to renew their leases, but only a fraction of them choose to negotiate additional terms and concessions within their lease renewal. As a result, you may be missing out on rental concessions such as the following:
Free or reduced rent
Your landlord may have offered rental abatement when you first moved in, and you can ask for this concession again as you renew. You could save substantial money by receiving months of free or reduced rent, thus lowering your net effective rent.
Is your space meeting all your company’s needs? If not, you will want to negotiate for a tenant improvement allowance. Landlords may be willing to pay for these property updates to avoid the cost of losing you as a tenant.
Amenities and services
You can also negotiate for other concessions such as access to amenities or free services. These concessions could include free access to the onsite gym or reserved parking spots.
To negotiate these concessions, follow these three rules of lease renewal negotiation:
Know your critical dates
Most leases contain critical dates that must be adhered to for your renewal option to be valid. Do you know your dates?
Run a mark-to-market comparison
How does your lease rate compare to others on the market? Evaluating market conditions is a critical step to complete prior to beginning negotiation.
Time is your friend
Tenants need time to negotiate a successful lease renewal. Leverage is best created when strategizing real estate options 12 to 18 months in advance to the end of you current lease term.
Don’t just accept whatever terms your landlord puts in front of you. Contact a member of our tenant representation team today to get started on your lease renewal negotiation.